What is a Regional Co-op Fund for Pump It Up, and who establishes it?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
required, such participation may require you, at a minimum, to display/utilize related marketing materials at your Pump It Up Franchised Business, to advertise the National Promotions with through email and other medium, and to promote all National Promotions on local website(s) and through social media platforms.
D. Regional Co-op Fund.
- (1) We may, in our sole discretion, establish a regional advertising cooperative ("Regional Co-op Fund") in any DMA. The Regional Co-op Fund shall be organized and governed in a form and manner and shall commence operations on a specified date, approved in advance by us in writing. If we choose to do so, we may prepare bylaws to be used by the Regional Co-op Fund and may require the Regional Co-op Fund to incorporate. Once a Regional Co-op Fund is established in a DMA in which the Franchised Business is located, you shall become a member of such Regional Co-op Fund and are required to contribute to the Regional Co-op Fund such amounts as determined by its members no later than 30 days after the date on which the Regional Co-op Fund commences operation. You will not be required to be a member of more than one Regional Co-op Fund with respect to the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a Regional Co-op Fund is a regional advertising cooperative that Pump It Up may, at its sole discretion, establish in any Designated Market Area (DMA). The purpose of the Regional Co-op Fund is to administer regional marketing programs and develop standardized promotional materials for use by its members in local advertising, subject to Pump It Up's approval.
Pump It Up reserves the right to organize and govern the Regional Co-op Fund, including determining the form and manner of its organization and approving the date it commences operations. Pump It Up may also prepare bylaws for the fund and require it to incorporate. Franchisees within the DMA are required to join the Regional Co-op Fund and contribute amounts determined by its members, typically on a monthly basis.
Pump It Up is a member of all Regional Co-op Funds and can participate in meetings, but only has a vote if it or its affiliates operate a Pump It Up Business in the area. If the members cannot decide how to spend the funds, Pump It Up can take over the decision-making authority with 10 days' notice. Pump It Up also has the right to terminate and restart any Regional Co-op Fund, and upon termination, the monies must be used for advertising and promotional purposes for Pump It Up Businesses in the DMA. Franchisees may request an exemption from membership, which Pump It Up can grant or deny at its sole discretion.